Correlation Between Samwha Electronics and PI Advanced
Can any of the company-specific risk be diversified away by investing in both Samwha Electronics and PI Advanced at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Samwha Electronics and PI Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samwha Electronics Co and PI Advanced Materials, you can compare the effects of market volatilities on Samwha Electronics and PI Advanced and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Samwha Electronics with a short position of PI Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samwha Electronics and PI Advanced.
Diversification Opportunities for Samwha Electronics and PI Advanced
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Samwha and 178920 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Samwha Electronics Co and PI Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PI Advanced Materials and Samwha Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Samwha Electronics Co are associated (or correlated) with PI Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PI Advanced Materials has no effect on the direction of Samwha Electronics i.e., Samwha Electronics and PI Advanced go up and down completely randomly.
Pair Corralation between Samwha Electronics and PI Advanced
Assuming the 90 days trading horizon Samwha Electronics Co is expected to generate 1.4 times more return on investment than PI Advanced. However, Samwha Electronics is 1.4 times more volatile than PI Advanced Materials. It trades about 0.12 of its potential returns per unit of risk. PI Advanced Materials is currently generating about 0.1 per unit of risk. If you would invest 270,000 in Samwha Electronics Co on October 11, 2024 and sell it today you would earn a total of 67,000 from holding Samwha Electronics Co or generate 24.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Samwha Electronics Co vs. PI Advanced Materials
Performance |
| Timeline |
| Samwha Electronics |
| PI Advanced Materials |
Samwha Electronics and PI Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samwha Electronics and PI Advanced
The main advantage of trading using opposite Samwha Electronics and PI Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samwha Electronics position performs unexpectedly, PI Advanced can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PI Advanced will offset losses from the drop in PI Advanced's long position.| Samwha Electronics vs. Grand Korea Leisure | Samwha Electronics vs. Woori Financial Group | Samwha Electronics vs. Sangsin Energy Display | Samwha Electronics vs. PLAYWITH |
| PI Advanced vs. Hanjin Transportation Co | PI Advanced vs. Lotte Non Life Insurance | PI Advanced vs. NH Investment Securities | PI Advanced vs. Woori Technology Investment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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